There’s no end when it comes to taxes. The more you come here, the more complex the science of taxation.
So is Value Added Tax (VAT). Behind the 10%, sorry it had to be corrected to 11%, it turned out to have a lot of interesting things to explore.
Rest assured that everyone who is old enough knows that the VAT rate is single. You don’t have to work hard to calculate it.
Based on Article 7 paragraph (1) of Law Number 8 of 1983 as amended several times by Law Number 42 of 2009 concerning Value Added Tax and Sales Tax on Luxury Goods , the VAT rate is single, namely 10%. However, since the enactment of Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (HPP), the VAT rate has changed to 11% as of April 1, 2022. The rate will increase to 12% a maximum of January 1, 2025.
Despite the change, the VAT rate is still single at 11%. However, if you read the following passage, you will doubt that VAT is single-tariff.
Article 2 Paragraph (2) :
“Taxable entrepreneurs who carry out certain business activities in the form of delivery of used motor vehicles are required to collect and deposit Value Added Tax payable on the delivery of used motorized vehicles with a certain amount.”
Article 2 Paragraph (5) :
“The certain amount as referred to in paragraph (2) is set:
1.1% (one point one percent) of the Selling Price, which will take effect on April 1, 2022; and
1.2% (one point two percent) of the Selling Price, which comes into force at the time the Value Added Tax rate is applied as regulated in Article 7 paragraph (1) letter b of the Value Added Tax Law.”
Come on, can anyone guess why the VAT is 1.1% and 1.2%? Why not 11% or 12%?
Output Tax and Input Tax
For those who are unfamiliar with taxation, they may be confused as to why there is an article that shows a non-single VAT rate. He said 11%, why is there an article that mentions another tariff?
The above article is derived from the Regulation of the Minister of Finance Number 65/PMK.03/2022 concerning Value Added Tax on Delivery of Used Motor Vehicles.
Prior to the establishment of PMK-65, VAT on the sale of used motor vehicles was regulated in the Minister of Finance Regulation Number 79/PMK.03/2010 concerning Guidelines for Calculation of Input Tax Crediting for Taxable Entrepreneurs Conducting Certain Business Activities.
As a basis, we must keep in mind that in the VAT mechanism there will be those who collect and deposit VAT, and some will pay VAT.
Imagine that we are an office stationery retailer. We have been confirmed as a Taxable Entrepreneur (PKP). Automatically we have to collect VAT of 11% on the sale of office stationery in our shop. After a month has passed, we calculate that there is Rp. 11,100,000 in the cash register. Of course, the turnover that should be obtained is only Rp. 10,000,000. Then is IDR 1,100,000 the full amount deposited into the state treasury?
No.
A very straightforward “no”. Because if all the VAT collected is deposited into the state treasury, what’s the point of being a PKP that collects taxes? Make a loss! We will lose competitiveness with the shop next door that does not collect VAT.
Therefore, the government offers benefits if it becomes a PKP, so we can credit the input tax. Ouch! What about input tax?
Input Tax is the VAT that we pay to other PKPs. For example, all office stationery that we sell comes from factories. Well, for the purchase of office stationery, we pay the purchase price plus VAT. Yes! VAT is what we call Input Tax (PM). Meanwhile, the VAT that we collect on the sale of office stationery is the Output Tax (PK). Let’s just say the PM is Rp. 990,000. Then the amount of VAT deposited into the state treasury is the reduction between PK and PM, which is Rp. 120,000.
At this point, it might be clear what the advantages of being a PKP that collect VAT are. Yes! We can save on VAT because those who pay VAT indirectly are the last consumers.
Travel 1.1%
Have you ever wondered where used motor vehicle entrepreneurs get their merchandise from? Surely there is no factory producing used motor vehicles, right? Some sources say the used motorbikes or cars come from individuals who sell unused vehicles.
For the purchase of the used motorized vehicle, does this PKP pay VAT to the individual? Not. Because most individuals who sell their used vehicles are not PKP, so they do not have the right to collect VAT.
Used motorized vehicles are included in the Taxable Goods (BKP) which of course is subject to VAT. Therefore, the PKP for the seller of a used motorized vehicle is obliged to collect and deposit VAT on the sale of his used motorbike or car. Then, how much PM can be credited for this activity of buying and selling used motor vehicles?
From these tangled threads, PMK-79 was born, especially in article 3 letter a. The article stipulates that the amount of PM that can be credited is 90% of the PK. This means that 10% of the PK is deposited into the state treasury.
Then what about 1.1%?
Actually the mechanism is the same as PMK-79. However, in the latest regulation, namely PMK-65, a certain amount of the selling price deposited into the state treasury adjusts to the VAT rate as stipulated in the HPP Law, which is 11%.
So 10% of the PK deposited into the state treasury is multiplied by the 11% VAT rate. It’s easy 10% x 11% x selling price. That is the origin of the formation of the amount of 1.1% of the selling price that must be deposited by PKP to the state treasury.
From the explanation above, it is clear that VAT has a single rate of 11% and the amount of 1.1% is not VAT levied by PKP for used motor vehicle sellers but the amount of difference in PM crediting against PK.
Sumber https://www.pajak.go.id/id/artikel/mengulik-ppn-kendaraan-bermotor-bekas